§ 10-11-111 — Reserve for unpaid losses and loss expense

(1) Each title
insurance company, in addition to other reserves, shall at all times establish and
maintain reserves against unpaid losses, and against loss expense, and shall
calculate such reserves by making a careful estimate in each case of the loss and
loss expense likely to be incurred by reason of every claim presented, pursuant to
notice from or on behalf of the policyholder, of a title defect in or lien or adverse
claim against the title insured that may result in a loss or cause expense to be
incurred for the proper disposition of the claim. The sums of the items so estimated
shall be the total amounts of the reserves against unpaid losses and loss expenses
of such title insurance company.

(2) The amounts so estimated may be revised from time to time as
circumstances warrant but shall be redetermined at least once each year.

(3) The amounts set aside in such reserves in any year shall be deducted in
determining the net profits for such year of any title insurance company.

Legislative History

Source: L. 69: p. 524, � 1. C.R.S. 1963: � 72-26-11.